Hi, I am Praneeth.
In this boh you will learn the 5 best alternatives to entrepreneurship in 2020 and beyond.
Without further ado, let’s get started.
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What is Entrepreneurship?
As per the wiki dictionary,
Entrepreneurship is all about starting your own business or running a business and taking some financial risks for sake of some profit in return.
This is called entrepreneurship and,
In 2020. if you want to make some profit off your money without taking any financial risks,
You have 5 possible ways and alternatives to entrepreneurship through which you can make a profit.
Here is the list of 5 alternatives to entrepreneurship you should know in 2020.
5 Alternatives to entrepreneurship.
Here are 5 best alternatives to entrepreneurship you should know in 2020.
- mutual funds.
- Rent building vehicles or land.
- bank interest.
- buy other business website stuff and assets like a gold land partnership.
- Royalties.
Let’s learn each reason in detail.
1. Mutual funds.
If you are not aware of what this thing actually is,
It is about collecting money from different individuals and invest the money in different places like stock, bonds, and other similar assets.
The difference between mutual funds compared to normal direct investing in the stock market is that,
In mutual funds, your money is handled by money managers and professionals of the stock market who study and analyze the stock market all the time.
Compared to investing in stocks directly, in mutual funds, there is less risk involved because the people who are investing money in the funds are highly professional minds of the stock market.
There are some pros and cons as well with mutual funds such as,
Pros of mutual funds include,
- Diversification of the investment means investing small chunks of money in different areas to reduce the risk of losing money if one stock price falls down.
- You mostly don’t have to worry about the stock prices and analyze the market yourself all the time because there are professionals who are managing your money carefully.
- Fewer transaction fees and easy to scale because the investment is diversified and the transactions are done all at once.
Along with the pros, there are a couple of some important cons of this idea.
- They have high commission rates because the people managing your money are professional beings who invest a lot of time researching and analyzing the market for making a profit for you.
- There can be some management abuses like the fund agencies misusing the power and authority of the investors of the funds.
- There can be tax inefficiencies like you might have to pay a lot of money for your profit in the funds for taxes.
Ultimately, mutual funds are a great deal for those who don’t have the time nor much money and risk-taking ability to start a business.
You can make some serious amount of profit through mutual funds.
It is not that you cannot start your own investment in the stock market but it has its own costs,
You need to put a lot of time analyzing the market and study different things and there is a lot of risks involved if you don’t invest in the right places or with the wrong knowledge.
So mutual funds are always a great idea for those who are looking to make some profit from their money in the least or no risk available.
If you are interested to learn about mutual funds click here.
2. Rental money.
This seems very obvious which it is not but you can earn a lot of money as a profit from this business idea.
When you are talking about rental income people think of mainly like,
- Apartments and room rents.
But,
It is not just limited to that,
You can rent things like,
- Your vehicles like cars and bikes for some monthly charges for those who want to start their own taxi business.
- You can rent your utensils and metal substances for use for building things and functions daily basis.
- You can obviously rent your agricultural land for farmers to do the farming giving you a share of it monthly basis.
- You can rent your land or your assets like a computer or any machine for their small business charging on daily basis.
- You can rent your ornaments and dresses like the premium ones for those who are in need of it on a temporary basis like acting classes.
You got my point.
These are all assets which you can lend out for people for rents and make money on a timely basis,
The first rule of financial independence is that you should know the difference between liability and an asset and start investing and gathering more assets as much as possible.
If you don’t know what an asset is,
In simple terms,
Asset means, it is everything once you purchase you can make money from it directly or indirectly and that every business wants,
Examples:
- Gold.
- Computers.
- Vehicles.
- Land.
- Tools.
- Machinery.
- Equipment.
A liability instead is something that even after you invest in buying it, you still have to continue investing money for it.
For example,
- Credit cards.
- Insurance bills.
- EMI bills.
- Electronic devices like TV and expensive phones.
- Taxes.
Click here to learn about assets and liabilities and how it is the major factor between rich and poor.
By investing money in the right things, you can create assets which can help you generate
Passive income source in the least amount of risk involved,
3. Interest money.
This one is pretty similar to the above thing.
This one is about interest.
If you don’t know what interest is,
It is the money you get if you lend it to someone periodically for the sake of using your money.
For example,
Person A has borrowed 20 dollars from a person B for some exam fees.
As long as person A gives off the total money to person B, person A has to give some additional money to person A.
The additional money person A gives to person B is for the sake of using the money of person B for that much time.
This is called Interest money.
Debt money is paid off until person A pays off all the 20 dollars along with the interest which depends on how much time person A takes to pay off the money for person B.
There are 2 ways you can make money through interest.
You can either give money to your friends or your relatives or someone you know,
You can earn some interest after giving money directly or you can save the money in the bank and let the bank do the job for you.
With banks when you store your money in the saving s or any bank account, let’s say savings or fixed account.
Bank will take your money from your account to give loans to businessmen and investors who are looking for loans and bug investment for some specific purposes.
Banks will similarly charge the interest from those people as long as they pay off the money to the bank and give a little portion of the interest money to you.
Because in the end, the bank has taken your money to give loans to investors and giving you a small commission out of the interest as your commissions.
This is how you earn money in banks.
I know a lot of people are aware of this idea but I thought of explaining it simply so,
There are pros and cons of both businesses,
If you are directly giving loans for people for that interest money then the pros include,
- You are always in control.
- You can keep your own interest rates.
With cons include,
- It can be risky like people might escape after borrowing the money from you.
- You can break the relation with people who took your money like not getting the interests on time or not paying interest at all due to some financial problems.
With interest money from banks the pros and cons are,
Pros.
- You can pay your bills by the money you save and the interest you get though the money from banks.
- It is less risky and money is safer than lending money directly.
- You don’t lose relations with people.
Cons.
- There are fewer interest rates or the money you get as interest is less than how much you can earn by lending yourself.
- If you save money in less trustworthy banks like new banks, there is a chance of getting fraud.
There is always a good chance of making money through interests.
It is about you to choose which one works best for you, your expenses, and your needs.
4. Buy other’s pre-established businesses or invest in other businesses.
If entrepreneurship is about starting a business from scratch and growing the business taking some risks and stuff like that,
The alternative could be buying a pre-established business itself.
Instead of taking all the risk, putting time and effort into building the business from scratch where there is a high chance of risk involved and the probability of committing mistakes is high.
You can purchase a pre-established business yourself and run that business all by yourself where you know the business is making some profits or has some reputation.
Talking about buying reestablished businesses, there are many options you can do here,
- You can buy a website or blog which has some traffic and income and start it yourself investing money where you know the risk involved in losing money is less.
- You can buy a restaurant or a small business that is driving some sales and making money and run it yourself rather than starting out all by yourself from scratch.
- You can go to a partnership of any business or buy shares from other businesses and make some good margin of commission and profit by revenue the business brings in.
- You can invest in other people’s startups like direct stock investment though it is pretty risky it can get you some money if done right with good profits.
- You can become an intrapreneur which is becoming an entrepreneur within a company or organization and having leadership skills to complete some project with less personal financial risks and earning a good name and money within a company which can later help you become a major part of any company if done right.
These are all great business ideas you can start beside or alternatives to entrepreneurship if the end goal is to make some money and earn some profit.
Let’s have a look at the last way of earning money besides entrepreneurship.
5. Royalties.
If you don’t know what it is,
In simple terms,
Royalty is a payment made in exchange for using someone’s property.
It is about buying the license from the owner of the property for using his property for your revenue or your work.
If you have a skill lets say,
- Singing.
- Photographs or attractive pictures.
- Writing or storytelling.
- Or you have land.
- Or you have some piece of content.
You can use that to earn the money like for a singer, you can produce copyright music and if anyone wants to use it for some commercial purpose,
They have to pay you to use that or you can do the copyright strike or do some legal activity as the owner of the product.
If you are a photographer and like taking pictures, people will have to pay you to use your picture in their blog or for their specific purpose.
You can write a book take a patent of it and let the publishers pay you for using your book to print and sell your book to people and make you money for using your property.
If you own a piece of land, which has some minerals or gold mines in it,
Companies can pay you for the sake of using the property for some time like digging in for the minerals.
If you have a blog or any type of content online which is very good and interesting,
Other bloggers of the industry when share your content on their blogs leaving a link to your blog which is like paying a royalty to you for using your property.
Like this,
These are different ways you can make money through royalties.
It is all about having or creating something worth full so that people would feel interested in buying the product from you.
It is mostly about having that skill to be able to create such a product,
The best example is,
Bill gates created windows software that people pay royalties to use the software for their specific purposes.
Or you can work in some company as giving ideas and suggestions for companies like a coach and let people pay you for using your ideas in their businesses.
These are all the possible ways you can make a profit in the least amount of risk involved.
Ending remarks.
There you go, I have answered the 5 best alternatives to entrepreneurship.
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Do comment on what you think about this blog and about entrepreneurship overall.
Read my other blogs,
- Reasons to start your own online business.
- Pros and cons of domain flipping business.
- Is reseller hosting business worth it?
I will catch you next time, till then.
Keep learning and keep growing.